City council approves plan to revive small-scale lodging property in Grand Marais

The Grand Marais City Council approved a conditional use permit during the Sept. 2 meeting, allowing a small-scale lodging operation with nine units and one residence on a former small resort property near downtown.

DAT Holdings LLC, owned by Grand Marais residents and business owners Cindy and Rick Crawford, has purchased the property at 14 4th Ave. W, which consists of several cabins and structures. The property, previously owned by Robert Nosker, has primarily been used for short-term and long-term rentals and sits within the MU commercial residential mixed-use district.

The Crawfords told city council members they plan to bring the property back to life by improving several cabins while maintaining much of its existing layout and appearance.

“We want to do what’s there. We want to bring life back into Nosker’s resort,” Cindy Crawford said during the city council meeting.

The majority of the units will remain short-term rentals. Some of the existing cabins need significant repairs. The project will include new foundations and infrastructure, with some buildings being torn down and replaced. The cabins will remain one-story and similar in size and appearance to the existing structures, although the plans include a slight change to roof pitches.

The first phase will focus on five cabins on the southern portion of the property. The Crawfords said the remaining cabins could eventually include some long-term rental units.

Property of small-scale lodging recently approved for a conditional use permit in Grand Marais | Photo by Kalli Hawkins

“I think it’s exciting that somebody is going to go in there and fix it up,” said Councilor Ben Peters said during the meeting.

The one residence on the property will be for one of Crawford’s sons, who will serve as the property manager and live in the home.

“I like that someone local is taking it on,” said Councilor Bill Lovaas.

Before the city council meeting, the project was discussed at the Aug. 26 City Planning Commission, where surrounding neighbors asked questions about the proposed building improvements, design, building height, and on-site management.

The planning commission voted 3-0 to recommend approval. Commissioners noted the property’s history as a resort and determined that small-scale lodging is an allowed conditional use in the city’s Commercial-Residential Mixed Use district. The commission also found that the proposal would preserve the property’s existing layout and would be compatible with a neighborhood that already includes vacation rentals.

Kalli Hawkins September 3, 2026